-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, POXVZuxrgVIIY+ESKcod4vLTVJ0IsMAd7mHoDs8bAQZt2humisM88m1Qkusg9lZ/ Vw9ZOMAWrraU/uS+CQwH+A== 0000912057-00-011230.txt : 20000314 0000912057-00-011230.hdr.sgml : 20000314 ACCESSION NUMBER: 0000912057-00-011230 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990422 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000313 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IXATA GROUP INC CENTRAL INDEX KEY: 0000929425 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 341833574 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 033-83526 FILM NUMBER: 567961 BUSINESS ADDRESS: STREET 1: 8080 DAGGETT STREET SUITE 220 CITY: SAN DIEGO STATE: CA ZIP: 92111 BUSINESS PHONE: 6196775580 MAIL ADDRESS: STREET 1: 8080 DAGGETT STREET SUITE 220 CITY: SAN DIEGO STATE: CA ZIP: 92111 FORMER COMPANY: FORMER CONFORMED NAME: SECURFONE AMERICA INC DATE OF NAME CHANGE: 19971114 FORMER COMPANY: FORMER CONFORMED NAME: MATERIAL TECHNOLOGY INC DATE OF NAME CHANGE: 19970326 FORMER COMPANY: FORMER CONFORMED NAME: MATERIAL TECHNOLOGIES INC DATE OF NAME CHANGE: 19970313 8-K 1 8-K ============================================================= SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 22,1999 The IXATA Group, Inc. (Formerly SecurFone America, Inc.) (Exact name of registrant as specified in its charter) DELAWARE 33-83526 95-4453386 (State or other jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification Number) 8080 Dagget Street San Diego, CA 92111 ------------------------------------------ (Address of Principal Executive Offices) (Zip Code) (858) 677-5580 ---------- (Registrant's telephone number, including area code) ============================================================= Item 2. ACQUISITION OR DISPOSITION OF ASSETS. On January 30, 1999, The IXATA Group, Inc., formerly SecurFone America, Inc. (the "Company"), executed an agreement with Teledata World Services, Inc. ("Teledata") (OTC/BB:TWOS), to sell certain prepaid cellular assets to Teledata for cash and Teledata common stock. The transaction was closed on April 22, 1999. Under the terms of the agreement, the Company sold its wholly-owned subsidiary, SecurFone, Inc., to Teledata for $498,000 in cash, 600,000 shares of Teledata common stock, and the option to sell the stock back to Teledata at a price of $2.50 per share effective one year from the date of the transaction if the market price of the Teledata stock is less than $2.50 per share. SecurFone, Inc. assets include certain cellular service resale agreements, the Company's Miami customer service center, rights to the Buy-The-Minute-TM- product and selected distribution channels. The asset sale improved the Company's balance sheet and was consistent with the Company's new business objective pursuing opportunities in the Internet and electronic commerce markets. A description of the transaction is set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1998, incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED. Not applicable. (b) PRO FORMA FINANCIAL INFORMATION. (1) UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION OF THE IXATA GROUP, INC. (FORMERLY SECURFONE AMERICA, INC.) The following unaudited pro forma condensed financial information is being filed herewith: Page: Unaudited Pro Forma Condensed Balance Sheet at March 31, 1999 4 Unaudited Pro Forma Condensed Statement of Operations for the Three Months Ended March 31, 1999 5 Unaudited Pro Forma Condensed Statement of Operations for the Year Ended December 31, 1998 6 Notes to Unaudited Pro Forma Condensed Financial Information 7 1 (c) EXHIBITS 10.1 Purchase Agreement, dated February 1999, between the Company and Teledata (incorporated by reference to the Company's Annual Report on Form 10-KSB for the year ended December 31, 1998 (File No. 033-83526) (the "1998 10-KSB")) 10.2 Security Agreement, dated February 1999, between the Company and Teledata (incorporated by reference to the Company's 1998 10-KSB) 10.3 Secured Promissory Note of the Company in the original principal amount of $248,000, dated February 1999, payable to Teledata(incorporated by reference to the Company's 1998 10-KSB) 10.4 First Amendment to Purchase Agreement, dated April 15, 1999, between the Company and Teledata (incorporated by reference to the Company's 1998 10-KSB) SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE IXATA GROUP, INC. (FORMERLY SECURFONE AMERICA, INC.) By: /S/ PAUL B. SILVERMAN ----------------------- Paul B. Silverman Chief Executive Officer Date: March 13, 2000 2 UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION The unaudited pro forma information set forth below gives effect to the sale of certain prepaid cellular assets to Teledata for cash and restricted common stock. The unaudited pro forma consolidated financial information set forth below reflects certain adjustments, including adjustment to restructure the operations of the Company after electing not to pursue prepaid cellular operations further. The Company will focus its efforts on the business-to-business e-commerce opportunities presented in conjunction with the IXATA, Inc. acquisition. A description of the IXATA, Inc. transaction, by reference, is set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1998 filed with the Securities and Exchange Commission on September 28, 1999. 3 The IXATA Group, Inc. (a development stage company) (Formerly SecurFone America, Inc.) Unaudited Pro Forma Balance Sheet March 31, 1999
----------------------------------------------------------------------------- HISTORICAL PRO FORMA PRO FORMA ADJUSTMENTS ----------------------------------------------------------------------------- CURRENT ASSETS Cash $ 5,869 1 $ 133,268 $ 139,137 Accounts receivable 8,853 - 8,853 Marketable equity securities - 1 300,000 300,000 ------------------------- ---------------------- --------------------- TOTAL CURRENT ASSETS 14,722 433,268 447,990 FIXED ASSETS - NET 155,337 1 (88,581) 66,756 OTHER ASSETS Deposits 1,225 - 1,225 ------------------------- ---------------------- --------------------- TOTAL OTHER ASSETS 1,225 - 1,225 ------------------------- ---------------------- --------------------- TOTAL ASSETS $ 171,284 $ 344,687 $ 515,971 ========================= ====================== ===================== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES Current portion long term debt $ 64,193 $ - $ 64,193 Notes payable 1,000,983 1 (364,732) 636,251 Accounts payable and accrued liabilities 558,737 - 558,737 Accrued payroll - officers 114,246 - 114,246 ------------------------- ---------------------- --------------------- TOTAL CURRENT LIABILITIES 1,738,159 (364,732) 1,373,427 LONG-TERM LIABILITIES Capital leases, less current portion 45,274 - 45,274 Notes payable, less current portion 1,000,000 - 1,000,000 ------------------------- ---------------------- --------------------- TOTAL LONG-TERM LIABILITIES 1,045,274 - 1,045,274 ------------------------- ---------------------- --------------------- TOTAL LIABILITIES 2,783,433 (364,732) 3,418,701 STOCKHOLDERS' DEFICIT Common stock 6,092 - 6,092 Additional paid-in capital 4,363,315 - 4,363,315 Additional paid-in capital - Stock options 2,874,475 - 2,874,475 Accumulated deficit during development stage (9,856,031) 709,419 (9,146,612) ------------------------- ---------------------- --------------------- STOCKHOLDERS' DEFICIT (2,612,149) 709,419 (1,902,730) ------------------------- ---------------------- --------------------- LIABILITIES AND STOCKHOLDERS' EQUITY $ 171,284 $ 344,687 $ 515,971 ========================= ====================== =====================
4 The IXATA Group, Inc. (a development stage company) (Formerly SecurFone America, Inc.) Unaudited Pro Forma Statement of Operations For the Three Months Ended March 31, 1999
------------------------------------------------------------------------------- HISTORICAL PRO FORMA PRO FORMA ADJUSTMENTS ------------------------------------------------------------------------------- REVENUES $ 22,642 2 $ (22,642) $ - COST OF SALES 55,809 2 (55,809) - ------------------------------------------------------------------------------- GROSS PROFIT (LOSS) (33,167) 33,167 - OPERATING EXPENSES General and administrative expenses 301,515 2 (228,813) 72,702 Restructuring charges - 2 261,980 261,980 ------------------------------------------------------------------------------- TOTAL OPERATING EXPENSES 301,515 33,167 334,682 ------------------------------------------------------------------------------- LOSS FROM OPERATIONS (334,682) - (334,682) ------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Gain on sale of subsidiary assets - 1 709,419 709,419 Interest expense (101,126) - (101,126) ------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (101,126) 709,419 608,293 ------------------------------------------------------------------------------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEM (435,808) 709,419 273,611 PROVISION FOR INCOME TAXES 1,600 - 1,600 ------------------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM (437,408) 709,419 272,011 EXTRAORDINARY ITEM Extraordinary gain on extinguishment of debt, net of income tax of $0 43,451 - 43,451 ------------------------------------------------------------------------------- NET INCOME (LOSS) $ (393,957) $ 709,419 $ 315,462 =============================================================================== BASIC INCOME (LOSS) PER SHARE Loss before extraordinary item $ (0.07) $ 0.04 =================== ======================= Extraordinary item $ 0.01 $ 0.01 =================== ======================= Net Loss $ (0.06) $ 0.05 =================== ======================= FULLY DILUTED INCOME (LOSS) PER SHARE Loss before extraordinary item $ (0.07) $ 0.04 =================== ======================= Extraordinary item $ 0.01 $ 0.01 =================== ======================= Net Loss $ (0.06) $ 0.05 =================== ======================= Weighted Ave. Number of Shares - Basic 6,091,881 6,091,881 =================== ======================= Weighted Ave. Number of Shares - Fully Diluted 6,151,881 6,151,881 =================== =======================
5 The IXATA Group, Inc. (a development stage company) (Formerly SecurFone America, Inc.) Unaudited Pro Forma Statement of Operations For the Three Months Ended March 31, 1999
HISTORICAL PRO FORMA PRO FORMA ADJUSTMENTS --------------------------------------------------------------------------------- REVENUES $ 367,358 2 $ (367,358) $ - COST OF SALES 476,728 2 (476,728) - --------------------------------------------------------------------------------- GROSS PROFIT (LOSS) (109,370) 109,370 - OPERATING EXPENSES General and administrative expenses 2,437,287 2 (2,437,287) - Stock-based compensation 1,620,000 2 (1,620,000) - Restructuring charges - 2 4,166,657 4,166,657 --------------------------------------------------------------------------------- TOTAL OPERATING EXPENSES 4,057,287 109,370 4,166,657 --------------------------------------------------------------------------------- LOSS FROM OPERATIONS (4,166,657) - (4,166,657) OTHER INCOME (EXPENSES) Gain on sale of subsidiary assets - 1 709,419 709,419 Other income - net 150,000 - 150,000 Interest expense (288,286) - (288,286) --------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (138,286) 709,419 571,133 PROVISION FOR INCOME TAXES - - - --------------------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEM $ (4,304,943) $ 709,419 $ (3,595,524) ================================================================================= BASIC AND FULLY DILUTED LOSS PER SHARE Net Loss $ (0.72) $ (0.60) ===================== ======================= Weighted Ave. Number of Shares 5,949,174 5,949,174 ===================== =======================
6 NOTES TO THE UNAUDITED PRO FORMA FINANCIAL INFORMATION Pro forma adjustments for the balance sheet as of March 31, 1999 and the statements of operations for the three months ended March 31, 1999 and the year ended December 31, 1998 are as follows: (1) Reflects the sale of certain assets held in the Company's wholly-owned subsidiary, SecurFone, Inc., to Teledata, World Services, Inc. (an unrelated entity). Fixed assets used in the prepaid cellular phone efforts were sold for $498,000 in cash and $300,000 of fair value restricted common shares. Teledata advanced cash proceeds of $364,732 to the Company prior to the closing of the agreement (April 22, 1999). Upon the close, the remaining proceeds of $133,268 were paid and the advances reduced the related debt on the Company's balance sheet. The sale of the subsidiary's assets resulted in realized gain of approximately $709,000. (2) Subsequent to the sale of SecurFone, Inc. to Teledata, the Company's management elected not to pursue prepaid cellular operations further. Therefore, all revenue and expenses related to the cellular operations was reclassified to be shown as a restructuring charge in the operating expense section of the statement of operations. 7 -----END PRIVACY-ENHANCED MESSAGE-----